02 December 2020 Morning Session Analysis
Dollar plunged as stimulus hopes faded.
Dollar index which gauges its value against a basket of six major currencies sank after McConnell shoots down the bipartisan $908 billion relief plan yesterday. Recently, a group of bipartisan group of senators have introduced a Covid-19 aid proposal which worth about $908 billion, with an aim to break the impasses over emergency relief plan for curbing the fallout of pandemic. In details, the plan was mainly aimed to provide monetary form of support to small business and local government, but would not include direct payment to Americans. However, the plan has been rejected by the Senate majority Leader Mitch McConnell while emphasizing that they are now currently running out of time for a coronavirus relief plan as government will shut down at 11th Dec. Besides, Mitch McConnell also revealed that he is seeking for a better proposal of stimulus plan as Congressional inaction has slowdown the US economy recovery pace. As of now, investors are putting their attention over the news on further stimulus plan’s talks in order to gauge the further direction of dollar index. As of writing, dollar index dropped 0.74% to 91.20.
In the commodities market, the crude oil price depreciated by 0.14% to $44.35 per barrel amid a stockpiles in US oil inventory. According to the API, US Crude Oil Inventories data came in at 4.146M, unexpectedly higher than the economist forecast at -2.272M, lifting the market worries over the unbalancing of oil market. Besides, gold price rose 0.10% to 1814.20 per troy ounce amid stalemate of stimulus plan in US.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:15 | USD – ADP Nonfarm Employment Change(Nov) | 365K | 410K | – |
| 23:30 | CrudeOIL – Crude OIL Inventories | -0.754M | -2.358M | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior breakout below the previous support level at 91.20. MACD which illustrate bearish bias momentum signal suggest the dollar to extend its losses toward the support level at 91.00.
Resistance level: 91.20, 91.50
Support level: 91.00, 90.75
GBPUSD, H1: GBPUSD was traded higher while currently testing the resistance level at 1.3230. However, MACD which illustrates diminishing bullish momentum suggest the pair to undergo technical correction in short term toward the support level at 1.3390.
Resistance level: 1.3430, 1.3465
Support level: 1.3390, 1.3350
EURUSD, H4: EURUSD was traded lower while currently testing the resistance level at 1.2065. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2065, 1.2130
Support level: 1.1990, 1.1935
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 104.40. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 104.20.
Resistance level: 104.40, 104.65
Support level: 104.20, 103.90
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7330. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7405.
Resistance level: 0.7405, 0.7480
Support level: 0.7330, 0.7265
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7045. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains toward the resistance level at 0.7075.
Resistance level: 0.7075, 0.7100
Support level: 0.7045, 0.7010
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2950. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.2920.
Resistance level: 1.2950, 1.2995
Support level: 1.2920, 1.2885
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.8990. MACD which display diminishing bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 0.8990.
Resistance level: 0.9035, 0.9080
Support level: 0.8990, 0.8930
CrudeOIL, H1: Crude oil price was traded lower while currently testing the support level at 44.05. MACD which display diminishing bearish bias momentum signal suggest the commodity to extend its losses after it successfully breakout below the support level at 44.05.
Resistance level: 44.65, 45.50
Support level: 44.05, 43.35
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1816.00. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1802.25.
Resistance level: 1816.00, 1833.65
Support level: 1802.25, 1789.75